Trump’s tariffs start to take effect

President Donald Trump’s 25% tariffs against Canada and Mexico took effect Tuesday, March 4, 2025. President Trump also doubled the tariff on Chinese imports from 10% to 20%. Already, big-box stores like Target and Costco have warned consumers that they will see higher prices immediately.

Danny Court, Senior Economist at Elliot D. Pollack and Company, joined “Arizona Horizon” to help explain the tariffs and some of the impacts consumers can expect to see.

When asked about these tariffs and the reaction Court had, he said “About the same reaction I had about a month ago, when they were announced. A lot of head scratching and headaches. It’s causing quite a lot of turmoil.” 

How long will this last?

“Well, it’s my hope that it’s short-lived, but that was expected. These are the ripple effects that occur when tariffs are imposed is there’s retaliation which is occurring. We’re expecting Mexico to retaliate,” said Court.

President Trump has already indicated there is reciprocal tariffs any time someone retaliates. “So there’s a promise that our tariffs increase as a result of a reaction. So it doesn’t look promising at this point, and we’re reaching a level both the level of tariffs and the kind of the basket of goods that we’re now affecting. Effectively 45% of all imports are from those three countries, and when you add 10 to 25% tariffs, we know prices are going to to go up,” said Court.

Impact on consumers and economy 

“Well, again, because it’s so widespread with the three countries and a threat of imposing tariffs on the European Union,” said Court. This means that it’s affecting most products that people tend to buy as an American consumer.

“The automobile industry looks to hit hard, like was mentioned before, produce, fruits and vegetables, other grocery items. And the retaliations affect our American businesses. Those that are trying to export our goods, have a harder time doing so. It has widespread effects both in terms of economic growth and consumer spending and inflation,” said Court.